I don't think I can agree with that. In almost any case I can think of, as either a purchaser or definitely during my time as a sales manager, the better interest rate is reserved for the person with a higher credit worthiness. Not the other way around.


In any case, that has little to do with the question posed.

 

You are right in one aspect.  Lower interest rates are in fact offered to those that have good credit.

 

I was leaning towards loans in general, not specifically car loans.  The "$0 down" tactic is most definitely aimed at the lower income/lower credit score person.  Sure the person doesn't have to cough up a down payment and can get a "reasonable" interest rate (not really).  Usually in this case, the person ends up "upside down" for the better part of the loan and ends up paying a much higher price (in this case a vehicle).

 

The "0% interest rate" thing is usually for a limited amount of time over the life of the loan.  Think of it this way.  There are many predatory credit card companies (and some banks) that will offer a "free balance transfer and 0% interest" deal to unsuspecting consumers.  This is mainly targeted at consumers that have debt that they can't handle, and no real savings.  The company is betting that the consumer will not be able to pay their debt in full during the "0% interest" period, and then they can charge a higher amount of interest on the debt.

 

I could be wrong (though I suspect that I'm not), but I don't believe that there is a car dealer that would ever offer a "$0 down, 0% interest" deal over the life of the loan, unless they have over-inflated the price of the vehicle up front.

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There are 10 kinds of people in this world.  Those who understand binary and those who don't.

I'm currently in the market for another vehicle myself.  My 99 Land Cruiser has 285k on it, and it's stranded me a few times in the past 6 months.  Cheap repairs each time, but I can do without the worry.

 

Young used cars used to be the way to go, but over the last few years, they have not undergone the depreciation that made them a bargain.  I'm looking for a truck with 20-70k miles, and they only go about 5 to 10 grand less than buying brand new.  In the case of Toyotas, they come REALLY close to the price of brand new.

 

So, for the first time in 30 years of owning vehicles, I may actually buy my first brand new car.

 

I haven't seen any current 0% financing deals, but would probably jump chance if it really is free money.  I can afford to pay cash, but at 0% I'll let my cash sit in my bank instead of theirs.

 

I hear tax time is not the best time to be in the market, because there are a lot of buyers flooding the market.  It sure seems that way this year, and I may just have to wait it out.

 

I recently traded my 2003 Dodge Ram 1500 4x4 for a new (2015) Ford F-150.  Yes I know, I probably could have gotten a bit more if I had sold it outright, but I didn't want to mess with the hassle.  Combining my trade with the cash that I had netted me a pretty good deal.  I started saving up for a new truck a couple of years ago, and was able to put a sizable amount of money aside.  I got my new truck below the current market value, and don't have a payment.

 

If you're looking for a 0% financing deal, it doesn't really exist.

---

There are 10 kinds of people in this world.  Those who understand binary and those who don't.

There's a comedian that does a skit equating buying a rental car to marrying a hooker...both might look good, but you're going to end up with something that a lot of other people have used the hell out of!!

 

I bought a used Isuzu trooper back in 2001 from the local Isuzu dealership (remember when those were around?).  It was a 99 model with only 12k miles on it, and it was 2/3 the price of a brand new model.  After driving it for a few days, I came across the "National" sticker inside the door post just above the GVW placard.

 

I got 150k miles out of that 4x4, with nothing but scheduled maintenance and the occasional EGR valve.  Maybe I just got lucky, but it sure didn't seem trashed.

---

 

 

If you're looking for a 0% financing deal, it doesn't really exist.

 

My former boss got a Dodge back in 2003 with 0% for 60 months.  No tricks, but he had a good credit rating and put 10% down.  Chrysler never raised the rate on him, and interest rates are even lower now. 

 

On the other hand, Chrysler did go bankrupt, so maybe the car companies figured out it wasn't the best idea in the world. 

 

I've seen them roll out the 0% for 48 months a few times on various makes in the last few years, but never on a model I wanted.  Because I never inquired, I also don't know if they mark the qualifying car's price up a few grand to make up the difference.  It wouldn't surprise me.

 

Gotta admit, I HATE dealing with new car dealer lots.

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My former boss got a Dodge back in 2003 with 0% for 60 months.  No tricks, but he had a good credit rating and put 10% down.  Chrysler never raised the rate on him, and interest rates are even lower now. 

 

On the other hand, Chrysler did go bankrupt, so maybe the car companies figured out it wasn't the best idea in the world. 

 

I've seen them roll out the 0% for 48 months a few times on various makes in the last few years, but never on a model I wanted.  Because I never inquired, I also don't know if they mark the qualifying car's price up a few grand to make up the difference.  It wouldn't surprise me.

 

Gotta admit, I HATE dealing with new car dealer lots.

 

That's my point.  There is not a car dealership the will offer "0% down AND 0% financing", especially on a new or late model vehicle.  Refer to my above comments about putting 10% down on a large purchase.

 

Now think about this for a sec.  Say you want to buy a new vehicle that is going to cost $50,000.00.  At 10% that means that you only need to put $5,000.00 down on it.  How long would it take a median income person to save up $5,000.00?  If that person is disciplined enough financially to save up $5,000.00 for a down payment, is that person worth the risk of financing the remainder of the loan at 0%?  Probably.  What about a person coming in to buy the same vehicle that doesn't have a down payment?

---

There are 10 kinds of people in this world.  Those who understand binary and those who don't.

I recently traded my 2003 Dodge Ram 1500 4x4 for a new (2015) Ford F-150.  Yes I know, I probably could have gotten a bit more if I had sold it outright, but I didn't want to mess with the hassle.  Combining my trade with the cash that I had netted me a pretty good deal.  I started saving up for a new truck a couple of years ago, and was able to put a sizable amount of money aside.  I got my new truck below the current market value, and don't have a payment.

 

If you're looking for a 0% financing deal, it doesn't really exist.

 

You got a much more reliable, and value holding truck to boot.  Congrats.

---

"You do your own thing in your own time. You should be proud."

You are right in one aspect.  Lower interest rates are in fact offered to those that have good credit.

 

I was leaning towards loans in general, not specifically car loans.  The "$0 down" tactic is most definitely aimed at the lower income/lower credit score person.  Sure the person doesn't have to cough up a down payment and can get a "reasonable" interest rate (not really).  Usually in this case, the person ends up "upside down" for the better part of the loan and ends up paying a much higher price (in this case a vehicle).

 

The "0% interest rate" thing is usually for a limited amount of time over the life of the loan.  Think of it this way.  There are many predatory credit card companies (and some banks) that will offer a "free balance transfer and 0% interest" deal to unsuspecting consumers.  This is mainly targeted at consumers that have debt that they can't handle, and no real savings.  The company is betting that the consumer will not be able to pay their debt in full during the "0% interest" period, and then they can charge a higher amount of interest on the debt.

 

I could be wrong (though I suspect that I'm not), but I don't believe that there is a car dealer that would ever offer a "$0 down, 0% interest" deal over the life of the loan, unless they have over-inflated the price of the vehicle up front.

Ok. Not sure what your above point is, other than to parse the argument and attempt to distance yourself from the actual question posed to you.


But sure, tell me more I guess.

---

I bought a used Isuzu trooper back in 2001 from the local Isuzu dealership (remember when those were around?).  It was a 99 model with only 12k miles on it, and it was 2/3 the price of a brand new model.  After driving it for a few days, I came across the "National" sticker inside the door post just above the GVW placard.

 

I got 150k miles out of that 4x4, with nothing but scheduled maintenance and the occasional EGR valve.  Maybe I just got lucky, but it sure didn't seem trashed.

Well, once in a blue moon you run into one of those Julia Roberts-Pretty Woman kinda hookers... :thumbsup:

---

What in the Wide Wide World of Sports is agoin' on here???

So I am considering getting a car using one of the car buying programs. I am a costco member, so I am trying theirs, plus I am getting some leads from edmunds and truecar. What has been peoples experience with these programs? Any recommendations? It seems like they are more of a way to generate leads for companies, but I want to see what people think and what your experience has been.

 

I think using Truecar is a advantage to a certain degree. Its more of like a referral program to where the dealer has to pay a commission to truecar to generate leads. I also dont think the price listed on Truecar and other car buying programs does not include the extra fees that may be listed on the car at the dealership. I dont know if its possible but if you could print out the price that was quoted online, you have an advantage.  

 

As many have already said it's best to finance through a credit union. Also as stated putting down 10% or more will help you negotiate the price down. 

 

The only thing I would recommend is waiting until Novemeber/ December when dealers are more eager to move the "older" models off the lot to make room for the newer models. 

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Whether someone has a liberal, or conservative viewpoint, a authoritative figure should not lock a thread for the sole purpose to get the last word in all the while prohibiting someone else from being able to respond.

Ok. Not sure what your above point is, other than to parse the argument and attempt to distance yourself from the actual question posed to you.


But sure, tell me more I guess.

 

 

I'm not sure which question exactly that you are referring to.

 

My point is that $0 down loans and 0% financing has a catch.  You are NEVER going to get both in a transaction, unless there is a large mark up on the item being purchased.  $0 down loans tend to carry a less-than-ideal interest rate, and 0% loans often require a good down payment (at least 10% of the purchase price).

 

Show me any dealership, whether it's a car dealership or a tractor dealership that will give you a "$0 down, 0% financing" loan if there isn't some catch tagged onto it.

 

I think using Truecar is a advantage to a certain degree. Its more of like a referral program to where the dealer has to pay a commission to truecar to generate leads. I also dont think the price listed on Truecar and other car buying programs does not include the extra fees that may be listed on the car at the dealership. I dont know if its possible but if you could print out the price that was quoted online, you have an advantage.  

 

As many have already said it's best to finance through a credit union. Also as stated putting down 10% or more will help you negotiate the price down. 

 

The only thing I would recommend is waiting until Novemeber/ December when dealers are more eager to move the "older" models off the lot to make room for the newer models. 

 

My only disagreement with you here is when it comes to new vehicles, now is actually the time to look for a 2015 model.  The 2017 models will hit the dealerships soon and it will be the 2016's that they try to move.

---

There are 10 kinds of people in this world.  Those who understand binary and those who don't.

You got a much more reliable, and value holding truck to boot.  Congrats.

 

Thank you.  I can't comment on reliability yet, but I like it so much more than my Dodge.  The depreciation is going to be lower because it's a truck (they depreciate less than cars).  I was kind of surprised that I was offered as much as I was for a trade-in on a 10+ year old truck.  The mileage probably had a lot to do with it.  As I said before, I probably could have done better had I sold it rather than traded it, but I just didn't want to mess with the hassle.

---

There are 10 kinds of people in this world.  Those who understand binary and those who don't.

I'm not sure which question exactly that you are referring to.

 

My point is that $0 down loans and 0% financing has a catch.  You are NEVER going to get both in a transaction, unless there is a large mark up on the item being purchased.  $0 down loans tend to carry a less-than-ideal interest rate, and 0% loans often require a good down payment (at least 10% of the purchase price).

 

Show me any dealership, whether it's a car dealership or a tractor dealership that will give you a "$0 down, 0% financing" loan if there isn't some catch tagged onto it.

The question you answered to which I responded to was if offered a 0% loan over 60 months should you take that offer?


You answered no you should pay cash. I answered no you should take the loan and explained why.


You responded (but ignored most of the post) with "yes but who is a 0% down, 0% interest loan targeting?" Which has what to do with the question I don't know. I pointed out, correctly, than any loan with a lower interest incentive is actually reserved for people with a higher credit rating, the exact opposite of what you claimed.


Then in your reponse you decided to parse that with a yeah but... while your right, if you separate that kind of loan into 0% down only loan, it targets poor people. Again changing said argument into something no one refuted, certainly not me.


Then I guess you thought you'd lecture me on the basics of credit offers?


As to the second part, here you go: <a class="bbc_url" href='https://www.kubota.com/finance/finance-promo.aspx'>https://www.kubota.com/finance/finance-promo.aspx</a>

---

 

 

I haven't seen any current 0% financing deals, but would probably jump chance if it really is free money. .

 

There is no Santa Claus.

There is no Easter Bunny.

There is no "free money" in automotive finance. 

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When you get into the endzone, act like you've been there before.

So I am considering getting a car using one of the car buying programs. I am a costco member, so I am trying theirs, plus I am getting some leads from edmunds and truecar. What has been peoples experience with these programs? Any recommendations? It seems like they are more of a way to generate leads for companies, but I want to see what people think and what your experience has been.

 

I've swore by them buying my last three vehicles that way.  No hassle, fair price.

---

There's a comedian that does a skit equating buying a rental car to marrying a hooker...both might look good, but you're going to end up with something that a lot of other people have  used the hell out of!! <b>driven hard and put away wet.</b>

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When you get into the endzone, act like you've been there before.